As the cryptocurrency market is still struggling to recover from the protracted consequences of the FTX collapse, good things could finally be in sight as crypto whales and sharks return to accumulating Bitcoin (BTC) and stablecoins.
Indeed, Bitcoin addresses holding between 100 and 10,000 BTC have added $726 million worth of the maiden crypto over the previous nine days, while stablecoins like Tether (USDT), Binance USD (BUSD), and Dai (DAI) holdings between $100,000 and $10 million are being accumulated intensely as well, the crypto analytics platform Santiment said on December 15.
What does this mean?
As explained in Santiment’s blog post, there are currently 15,848 Bitcoin addresses holding between 100 and 10,000 BTC, with the key whales making up 0.0364% of all BTC addresses. With this in mind:
“When the ratio of whale addresses vs. all addresses rises, it does theoretically imply that there is more interest in a rise from the kinds of traders who are not only millionaires, but are used to using their capital to get what they want.”
Furthermore, the increasing supply of BTC, USDT, USDC, BUSD, and DAI altogether, in combination with the largest streak of new BTC whale addresses in 10 months, indicates that the whales are finally in the accumulating rather than dumping mode.
Finally, as Santiment’s analyst concludes:
“All in all, we have reasons to be excited as we head into the final couple weeks of 2022. Anything can happen with prices as news continues to break about FTX funds, the Ukraine-Russia conflict continues, and covid still persists. But based on fundamentals, these are great signs that crypto is far from dead.”
Bitcoin price analysis
At press time, the flagship decentralized finance (DeFi) asset was changing hands at the price of $17,714.78, which represents a decrease of 0.62% on the day but still a gain of 5.19% across the previous week and 5.51% over the past 30 days.
In the meantime, Bitcoin’s market capitalization remains at $340.73 billion, maintaining its position as the leading cryptocurrency by this indicator, followed by Ethereum (ETH) at $157.98 billion, as per CoinMarketCap data retrieved on December 15.
Meanwhile, Robert Kiyosaki, author of the personal finance book “Rich Dad Poor Dad,” warned investors to “stay suspicious of (…) fake money,” referring to the fiat currencies like the US Dollar, in a tweet commenting on the announcement of a Republican investigation into the origins of Covid.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/crypto-whales-are-massively-stockpiling-bitcoin-heres-why-its-important/